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Microloan Program

This program provides small loans to new or growing small businesses and eligible not-for-profit childcare centers.

1-800-659-2955

Microloan Program

U.S. Small Business Administration

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Business Loans /

Loans

undefined Microloan Program?

The MicroLoan Program provides very small loans to start-up, newly established, or growing small business concerns and certain not-for-profit childcare centers. Under this program, SBA makes funds available to nonprofit community based lenders (Microlender Intermediaries) which, in turn, make loans to eligible borrowers in amounts up to a maximum of $50,000. The average loan size is about $13,000. Applications are submitted to the local intermediary and all credit decisions are made on the local level.

undefined Microloan Program?

Each intermediary lender has its own lending and credit requirements. However, business owners contemplating application for a microloan should be aware that intermediaries will generally require some type of collateral, and the personal guarantee of the business owner. A Microlender is a non profit organization that receives a loan from SBA. In turn, the Microlender makes small loans to very small businesses in the community. The Microlender also provides technical assistance to the small business. All credit decisions are made by the Microlender. The application process may vary depending on the Intermediary Microlender.

undefined Microloan Program?

The maximum term allowed for a microloan is six years. However, loan terms vary according to the size of the loan, the planned use of funds, the requirements of the intermediary lender, and the needs of the small business borrower. Interest rates vary, depending upon the intermediary lender and costs to the intermediary from the U.S. Department of the Treasury.